Latest news with #GreatFlattening
Business Insider
a day ago
- Business
- Business Insider
A laid-off Microsoft manager says it's not a personal failure, but he may pivot away from management
Patrice Melekian wanted to experience life in the US, and his job at Microsoft was his ticket. He told Business Insider he had a good, 17-year run with the company — until he got laid off from his manager job in May. He's returned to his home country of France, and while he's still figuring out his next career move, he said he might look outside management for his next role. Like many laid-off workers, Melekian doesn't know exactly why his job was cut. But he said Microsoft leaders have spoken about reducing management layers and improving efficiency — language that has coincided with manager layoffs over the past year. Melekian believes these efforts are part of a broader trend in tech. "Many companies in the tech industry, including Microsoft, have been moving to flatten their organizations to streamline the decision process," said the 54-year-old. In May, Microsoft laid off roughly 6,000 employees in an effort to increase what it calls "span of control" — or the number of employees who report to each manager, Business Insider previously reported. Then, earlier this month, the company laid off roughly 9,000 more workers. A spokesperson told BI earlier this month that the company was focused on reducing management layers and streamlining processes. It's not just Microsoft. Companies like Google, Intel, Amazon, and Walmart have announced plans to reduce the number of managers. This trend, which some have dubbed the "Great Flattening," refGreat Flatteningpush to reduce costs and bureaucracy — moves some corporate executives say will make their organizations more efficient. Microsoft did not respond to BI's request for comment. We want to hear from middle managers, job seekers, and people who've recently landed a job. If you're open to sharing your story, please fill out one or more of the linked Google Forms. Having fewer reports left more time for other work tasks Melekian joined Microsoft in 2007 through an acquisition, taking on a role as a program manager architect. He grew up in France and was living in Paris at the time, but became interested in moving to the US — partly out of curiosity about what it would be like to live there. In 2013, he relocated with his wife and two sons from Paris to Redmond, Washington — home to Microsoft's headquarters — to take a senior program manager role. At the time of his layoff, he was a principal product manager, leading a team of three. While Microsoft's effort to reduce management layers could leave some managers with more direct reports, Melekian said the number of people reporting to him hovered between two and three, depending on business needs — a structure he thinks worked well for his team. He said his role, which required balancing management responsibilities with hands-on project work, didn't change much during his three years as a principal product manager. Having a modest team size gave him the flexibility to spend more time on projects — something he appreciated. "When you have a team of three, you don't have to spend that much time managing," he said. "If a new opportunity came up and everybody was packed, that allowed me to jump in, take some of my own time, and go after it myself." Melekian said he started his principal product manager role during the pandemic, when remote work was widespread at the company. When Microsoft's offices reopened, he had the option to continue working from home and chose to do so. Microsoft's policy currently allows most employees to work remotely at least part of the time, though a decline in productivity could prompt a shift in policy, BI previously reported. His next role might not be in management Though a layoff is rarely happy news, Melekian said the timing was relatively fortunate: He had already been planning to move back to France for personal and family reasons. With his parents getting older, he wanted to be closer in case they needed support. His youngest son also just graduated from high school and plans to attend school in France this fall. "With our children and our own aging parents all being in France, there was nothing holding my wife and me back in the US," he said. Melekian said he's already sold his home in the US and returned to France, but hasn't started actively job hunting yet. He plans to do so later this summer once he's more settled. When his job search picks up, he's not sure whether he'll prioritize management roles or individual contributor positions. He said he may prefer a role with less managerial responsibility — one where he can have a more direct impact. "Manager roles certainly align with my experience, but I may also consider roles where I can contribute directly with my expertise," he said. Melekian said he has a few pieces of advice for people who are dealing with layoffs or career transitions. First, rely on others for advice and support. "You'd be surprised how willing people are to share their own similar experiences and help you navigate transitions," he said. Additionally, he recommended people keep an open mind to different job opportunities — and not rush their next career decision. "A layoff can feel like a personal failure, but it's usually the result of a broader business shift rather than an indication of your worth as a professional," he said. "Use the pause as an opportunity to reassess what's genuinely important for you personally and professionally."
Business Insider
3 days ago
- Business
- Business Insider
Millennials, it's a good time to take a break from your manager era
Mary Monohan, 37, saw the signs when the powers that be started reorganizing teams and switching up her assignments: layoffs were coming. By the time she learned her manager role was being eliminated, she'd already been searching for new opportunities. Less than a month later, she's starting to realize that she may have to be willing to make a lateral professional move or even "a few thousand dollars less than I was making before," she told Business Insider. Millennials in management are in a tough spot. Caught somewhere between entry-level roles and the C-Suite, they're especially vulnerable to the Great Flattening, a trend of eliminating middle managers brought on by companies' desires to cut costs and bureaucracy. Those who are let go may have to accept lower pay or titles in their next role, while those who remain are left to take on extra responsibilities and reports. Daniel Radmanovic, 40, was laid off from his managerial position at Deloitte in October. He started actively job searching in January and said it was a "soul-sucking learning experience." However, on Friday, Radmanovic received a verbal job offer from a Fortune 500 company. He described it as a "pivot" because he'll be in a client-facing individual contributor role and not managing people, but it isn't a step back since he's excited to embrace the change. "I can just focus on my job and my clients," he told Business Insider, adding, "I can't tell you how excited I am to be getting this role." Are you a middle manager? Please fill out this quick Google form or reach out to these reporters at mhoff@ and allisonkelly@ Letting millennial managers go and giving the rest more reports Many older millennials have found themselves caught in the Great Flattening. Gusto, a payroll and benefits platform, found that 35- to 44-year-olds are being hardest hit by manager firings or layoffs at 8,500 of its small and midsize business clients. Layoffs among that age group of managers rose more than 400% between January 2022 and September 2024, compared to a decline of 48% for 55- to 64-year-olds. Managers who survive the layoffs face another problem: a growing pool of direct reports. Gusto data showed that individual contributors per people manager nearly doubled from 3.2 in January 2019 to 5.8 in September 2024, based on the sample of small and midsize businesses analyzed. This means that many of today's managers have to balance a growing slate of 1:1 meetings, staff questions, and paperwork. In Monohan's experience, having a good manager is important for people's experience at work, especially for an entry-level worker. "Your manager plays a huge role in getting you promoted, getting you seen, getting you a raise, a bonus," Monohan said. "I've worked hard as a manager to try and get people that worked under me recognized, and sometimes it could take six months or longer to get them the bonus or the recognition that they deserve." She added that she's not sure what will happen with some of her outstanding duties, like her former report's performance review. "There are these open threads," she said. "You're just hoping companies are going to be able to pick up the pieces and move forward with, when it comes to the people you were managing." There's still hope, even if it involves a pay cut or demotion The job market isn't all doom and gloom for millennials. The US rate of layoffs and discharges is still low. Plus, the unemployment rate for 35- to 44-year-olds continues to be lower than the overall unemployment rate — 3.2% compared to 4.1% in June. Monohan is confident her past experience will lead to a job, but is worried about how soon she can get one and the lack of opportunities available. "As a single person without a second income or healthcare plan to fall back on, I have to know my worth but also face the realities of how long I can be out of work without having to move in with family or make dramatic life changes," Monohan said. She said she can't be picky in the current job market. She's open to individual contributor roles, but would ideally get another manager job. In the meantime, she's been networking and might take on some contract work. Others in her position have told BI they are settling for work they feel overqualified for to pay the bills. Radmanovic recommends not going through the job search process alone, if possible. He said he frequently talked to another laid-off Deloitte worker. They gave each other advice, helped with interview preparation, and commiserated during the process. Radmanovic already told the former coworker the good news about the job offer and hopes they will land one soon. "Sometimes it's nice to just vent with somebody that's going through that as well," Radmanovic said.
Economic Times
6 days ago
- Business
- Economic Times
Job market mayhem: Whether you're 22 or 52, job searching in 2025 is a total nightmare
Why are Gen Z grads struggling so much? Live Events What's happening to middle management? Why can't older Americans retire? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Looking for a job in 2025? You are not alone if it feels more difficult than ever. From recent college graduates to baby boomers postponing retirement, the struggle to find or keep a job affects every generation. The market is tight, competition is fierce, and no one appears job market in the United States in 2025 will affect people of all ages. Gen Z is losing entry-level jobs, millennials and Gen X are in a thinning middle, and boomers are postponing retirement. Each age group is dealing with this bleak employment landscape, as per a report by Business those just starting out, the post-college dream is fading fast. Take 21-year-old Bella Babbitt, for example. A 2024 graduate who earned her degree in just three years, she applied to hundreds of jobs and spent months waiting tables before finally landing a media role, through a family connection, not job boards. 'My parents can't understand how we're applying everywhere and hearing nothing,' she Federal Reserve confirmed what many in Gen Z already knew: the job market for 22-to-27-year-olds with degrees 'deteriorated noticeably' in early 2025. And with government funding cuts, corporate hiring freezes, and the looming shadow of AI, traditional white-collar routes are shrinking fast, as per a report by Business Jones, 26, has a degree in sports communications, $25,000 in student loans, and no job prospects. He's moved back in with his parents and is freelancing to scrape by. 'I'm just trying to find a job, period,' he said those considering grad school or law school are facing new problems, oversaturation, high tuition, and limited payoff. Meanwhile, some Gen Z workers are pivoting to blue-collar fields just to stay afloat, feeling that college no longer guarantees a stable millennials and Gen Xers, the danger lies in the 'Great Flattening.' That's the name some experts are giving to the corporate trend of gutting middle management to reduce costs. It's left experienced professionals stuck in limbo, too senior for junior roles, not quite executive enough for top-tier Cole, 39, was laid off from her product support job in late 2024. Despite keeping her resume sharp and her LinkedIn active, she's still searching. 'It seems like companies either want very senior experience or brand-new grads,' she said. 'There's no space for the middle anymore.'A payroll firm called Gusto found that manager-level firings, especially for people between 35 and 44, have skyrocketed more than 400% since 2022. And job postings for managers are dwindling too. That's forced many mid-career professionals to downgrade their ambitions, with some even applying to entry-level roles just to stay such millennial, Giovanna Ventola, 35, has faced three layoffs in three years. In response, she created Rhize, a job search support group. 'Most members are over 35,' she said, adding that many once earned six figures as directors or VPs but are now just hoping for any paycheck, as per a report by Business once a milestone to celebrate, now feels out of reach for many older Americans. A 2024 AARP report revealed that 20% of Americans over 50 have no retirement savings at all. That's left them working long past the age they planned to step Nordland, 53, has been laid off twice in two years and says she's barely keeping up with her bills. 'I should be 12 years away from retiring, but that's not going to happen,' she said. 'I have no retirement savings.'Herb Osborne, 71, juggles two jobs in California, working full time for a charcuterie company and part time as a hotel auditor. 'Financially, it's imperative that I work,' he said. 'Social Security doesn't cover anything.'A 2024 Harris Poll found that 78% of boomers feel their age hurts their job prospects, and more than half believe it limits their career options. And yet, many keep working. LinkedIn reported that 13% of baby boomers who once listed themselves as retired have since reversed decades of experience and a passion for teaching, Bonnie Cote, a substitute teacher in the Washington, DC, area, says it's difficult to find a job that pays enough to supplement her Social Security, particularly in her job market in 2025 is tough, no matter how old you are or how much experience you have. Gen Z is dealing with broken promises of stability after college, millennials and Gen Xers are stuck in a middle layer of management that is disappearing, and boomers are working longer than they ever planned. The economy is uncertain, hiring is down, and there is a general feeling of being are cutting costs, laying off employees, and freezing hiring, making it difficult for people of all ages to find stable is affected, but Gen Z has fewer entry-level jobs, millennials and Gen X are being laid off, and boomers are postponing retirement due to financial difficulties.
Business Insider
11-07-2025
- Business
- Business Insider
Job anxiety has workers misreading everyday signals
Share Save Good morning. It's the last day of Amazon's Prime Day sale, so time is running out to snag some of the best deals of the summer. The Reviews team at BI has gathered the best discounts for your home, kitchen, closet, and more — and they've tested all the items, too. In today's big story, welcome to the age of office paranoia, where layoffs, AI, and job insecurity are terrorizing workers. What's on deck: Markets: JPMorgan says retail investors will lead a stock-buying spree in the second half of 2025. But first, we need to talk. If this was forwarded to you, sign up here. The big story Office paranoia Getty Images; Ava Horton/BI They think they're next. The company snacks are worse. The office air conditioning goes out. An unexpected meeting appeared on your calendar. The signs all point toward one thing: looming layoffs. Or not. Sometimes, things are just as mundane as they appear. It's what experts call " paranoid attribution," when employees read negative meaning into regular workplace occurrences. It's occurring in workforces across America. It's not hard to understand why: AI is threatening to take jobs, strict RTO orders are becoming more common, and the Great Flattening is coming for middle management. "Workers are feeling disempowered," said Michele Williams, a professor of management and entrepreneurship at the University of Iowa. "They're looking for these social cues and overinterpreting social cues because of that insecurity." Meanwhile, the reality is that layoff rates are still low — relative to historic levels — and remain concentrated in white-collar sectors, especially at big-name companies that dominate headlines. In other words, things may not be as bad as they seem. But the paranoia is still reshaping the workplace. The fear isn't good for anyone, BI's Juliana Kaplan writes. When employees are anxious about their career security, they probably aren't doing their best work. One worker that BI spoke with has completely changed her perspective on her career after getting laid off twice in two years. The first time was the day that she had arranged a return-to-office party for the workers reporting to her. "It's really hard to go to work every day and to know that you may not have a future here no matter how hard you work," she said. On the other hand, fear can be terribly efficient. When companies shift toward a more " hardcore" management style, they are generally banking on employees clinging to well-worn adages about becoming indispensable at work. Employees were supposed to become hyper-focused, not hyper-concerned. Now, staffers are looking at the corporate world a little differently — and some are turning their back on it altogether. 3 things in markets The hottest job in private equity: fundraising. Due to slumping returns in the sector, demand is high for professionals who can woo investors and keep them happy. BI spoke to four recruiters who shared the top jobs, skills, and experiences PE firms are looking for. Retail investors to the rescue. JPMorgan strategists say investors are poised to inject $500 billion into stocks for the rest of 2025, which will mostly come from retail. The bank estimates retail investors have purchased a net $270 billion worth of stocks so far this year. Another record under bitcoin's belt. The digital currency hit a fresh all-time high above $113,000 on Thursday, its second milestone in 24 hours. Analysts believe it has even higher to climb. 3 things in tech Amazon's got big ambitions for Starfish. An internal planning document from late 2024 obtained by BI details the e-commerce giant's multi-year Starfish project, which uses AI to enhance and increase product listings on Amazon's Marketplace. The document added that its eventual goal is to make Amazon the best source of " all product information worldwide." Tesla drivers might be getting a controversial backseat driver. Elon Musk announced that Grok, the chatbot built by xAI, would be available on Tesla's EVs by "next week at the latest." The launch comes after Grok posted a series of inflammatory posts on X, some of which were later deleted. The Big Apple takes on The Bay. New York City tech leaders are challenging San Francisco's dominance as the seat of the tech industry. More startup funding still flows to California, but fresh talent and government funding are heading to New York. 3 things in business Starbucks is making baristas write messages on cups. The coffee chain is trying to add more human connection to its storefront workflow — but is having a cute little message on your cup really worth it if the barista is forced to do it? BI's Katie Notopoulos doesn't think so. Amazon Prime Day: deeper discounts, fewer products. It looks like Prime Day actually has better sales this year, but it might be harder to find them since they're spread among fewer things. Shoppers are stocking up on household items. Sometimes billionaires are bad for business. That's what Jacob Frehling has found in Sun Valley, Idaho, where he runs a coffee shop. Frehling told BI his sales dip each year when the billionaires are in town, and he's never met a local who's excited about the conference. In other news Investors push past tariff angst to power stocks to fresh all-time highs. Why the next app for relationships won't look like a dating app, according to a VC. Top White House aide sold at least $1 million in Truth Social stock the day before Trump's April tariff announcement. A private collector scored the OG Birkin for $10 million. Trump's Big Beautiful Bill is quietly handing startups a shot at a faster payday. 'A little numb' to tariffs and 'very resilient': How CEOs are describing American consumers. Anam builds digital humans that can have lifelike conversations. Read the pitch deck that it used to raise $9 million. I switched from PR to health tech with no engineering or medical experience. Here's how I overcame impostor syndrome. What's happening today Last chance of the year to observe "Manhattanhenge," when the sun sets in perfect alignment with the Manhattan street grid. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Kiera Fields, editor, in London.
Business Insider
11-07-2025
- Business
- Business Insider
Welcome to the age of office paranoia, when layoffs, AI, and job insecurity are terrorizing workers
When Amber Smith, 28, had trouble submitting an IT support ticket, she quickly realized that her second layoff in one year had arrived. Before that, she was already jumpy. She'd be unnerved by everyday workplace tasks, like when her manager asked to hop on the phone on short notice, or a companywide meeting suddenly appeared on her calendar. It's a sign of the times as workplace power swings away from workers, and layoffs dominate headlines. While layoffs are still low relative to historic levels, they loom large in workers' minds. A miasma of new stresses is also permeating white-collar offices: the threat of AI taking jobs, stricter return-to-office pushes, and a new hardcore culture that's eroding work-life balance. There's also the hollowing out of middle managers, and the Great Flattening has left some with fear that they'll be next. "Workers are feeling disempowered," Michele Williams, a professor of management and entrepreneurship at the University of Iowa, said, adding that this trend reared its head during the 2008 recession and is now back again. "If the boss walks by and doesn't say 'hi,' are they planning to fire me, as opposed to the boss was just busy that day and just didn't notice you?" Williams said. "They're looking for these social cues and overinterpreting social cues because of that insecurity." It's what experts call " paranoid attribution," where employees read negative meaning into regular workplace occurrences. Do worse snacks mean the company is struggling financially? Is a warmer office a sign that management is cutting costs on air conditioning? Are more interns a good sign or a bad sign for the hiring budget? The fear isn't good for anyone — when employees are anxious, they probably also aren't doing their best work. The paranoia may be more psychological than based in reality. Overall, layoffs are still low and concentrated in white-collar sectors, especially at big-name companies that dominate headlines. While hiring has slowed in the last year, the unemployment rate is still relatively low, as well. However, it has gotten much more difficult to get a new white-collar job, and promotions have slowed way down. The paranoia over employment uncertainty pushed Smith out of the corporate world completely. These days, she's self-employed as a content creator and reseller. "I feel so much better because being self-employed, obviously, I'm not going to get laid off," Smith said. Monica Wiant, a 47-year-old copywriter in Minnesota, has completely changed her perspective on work and her career after getting laid off twice in two years. The first time she was laid off was the day that she had arranged a return-to-office party for the workers reporting to her. She was also coming off a glowing performance review in her role as a VP. "The day that I got that news, it was like going to the worst surprise party I've ever been to," Wiant said. In retrospect, she said, there were some warning signs. Budgets for her department kept getting reduced, and they were asked to do more with less. Advertising budgets shrank, and some hiring was paused. "I feel like so many companies have lost sight of how important the human experiences of their employees are. There's no place that's less motivating than a downsizing workplace," Wiant said. "It's really hard to go to work every day and to know that you may not have a future here no matter how hard you work." Have a story to share about a layoff or office paranoia? Contact this reporter at jkaplan@ How paranoia is reshaping workers and the workplace Mark Freeman, 65, has some advice after spending the last 25 or so years in supply chain technology and getting laid off twice throughout his career. "As soon as they say, 'don't worry, no one's going to get laid off,' you should get your résumé out there and start looking, because you can't believe them." He said he's learned it's important to be agile and constantly looking for other job opportunities; waiting until after a layoff will mean you're already behind. Attention on layoffs, as Business Insider's Tim Paradis writes, might bite into productivity amid worker unease. Williams said that workers become less engaged as their energy shifts from actually getting work done toward worrying and becoming hypervigilant. On the other hand, employees might also cling harder to old adages about becoming indispensable at work. This is what some Big Tech companies are hoping for when they place more emphasis on performance reviews in a shift toward a more "hardcore" management style. Williams said working harder is good advice when a promotion or raise seems realistic. "But if you push it to the extreme, you're going to have workers hoarding information and knowledge because then they become indispensable," she said. "But the sharing of that knowledge is what the organization needs to increase collaboration and innovation." Benjamin Friedrich, a professor at Northwestern's Kellogg School of Management, said that, in isolation, workers might not be willing to put in extra effort if they feel their trust has been broken by their firms. Of course, Friedrich said, not all power is lost among workers right now: While the worker power pendulum is still swinging, the "amenities" of the Great Resignation and the pandemic era haven't faded completely. "If you look at the breadth and the coverage of remote work or what share of workers can work some of the time at home, it's been very stable," Friedrich said. By the time her second layoff rolled around, Wiant wasn't as surprised and was more attuned to those warning signs. While weathering two layoffs was far from pleasant, it's also made Wiant turn introspective. "I don't feel as deep of a need to have all of my needs met from work," Wiant said. "I realize that I can cultivate a sense of purpose and creative challenge and intellectual challenge from other things in my life."
